Shareholders Approve BNI Stock Split Ratio 1:2

Illustration of stock movement (Photo: Doc. Antara)

JAKARTA - The Extraordinary General Meeting of Shareholders (EGMS) for 2023 PT Bank Negara Indonesia (Persero) Tbk or BNI (BBNI) approved the breaking of outstanding shares or stock split. The share-breaking ratio is 1:2.

"With this ratio, the investor base can be further expanded in line with the company's more affordable share price, especially for individual or retail investors," said BNI President Director Royke Tumilaar quoting Antara.

The nominal value per Series A Dwiwarna and Series B shares changed from Rp7,500 to Rp3,750. The provision is that 1 Series A Dwiwarna share is maintained as a Series A Dwiwarna stake owned by the Republic of Indonesia with a nominal value of Rp3,750.

In addition, 1 Series A Dwiwarna share became 1 Series B stake owned by the State of the Republic of Indonesia with a nominal value of Rp3,750 per share. Meanwhile, the nominal value per Series C share was from Rp375 to Rp187.5.

In connection with the company's share-breaking, the GMS-LB also approved changes to Article 4 paragraph (1) and (2) The Basic Budget is related to the nominal value per share.

Furthermore, the EGMS agreed to grant authority and power to the Company's Board of Directors, with substitution rights, to carry out all and every necessary action in connection with the implementation of the company's share-breaking.

"This step is expected to have a positive impact on trading activities on the Stock Exchange, thus encouraging the company's stock liquidity," said Royke.

In the last three years, the company's shares have received a positive response from investors. The company's share price at the close of trading on August 31, 2023 was recorded at the level of IDR 9,175 per share, an increase of 79.9 percent from the same position three years earlier.

Compared to the previous year, the company's share price increased by 7.6 percent (year-on-year/yoy). This increase is better than the Composite Stock Price Index (JCI) which decreased by 3.1 percent yoy and the LQ-45 Index which also weakened 5.9 percent as of August 31, 2023.

In terms of trading volume on the Indonesia Stock Exchange (IDX), during the period January to August 2023, the company's shares had an average daily transaction volume of IDR 256 billion.

"The corporate action does not affect the adequacy of the company's capital and financial performance. The stock split will also not cause a dilution or decrease in the number of share ownership by the company's shareholders," said Royke.

With this corporate action, the number of outstanding company shares is expected to increase proportionally. Meanwhile, the nominal value and market value of each share will adjust proportionally.